Lorillard Inc. Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Lorillard, Inc. (NYSE:LO) will unveil its latest earnings on Thursday, February 9, 2012. Lorillard manufactures and sells cigarettes and tobacco under the brand names of Newport, Kent, True, Maverick, and Old Gold.

Lorillard, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.96 per share, a rise of 12.6% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. For the year, analysts are projecting net income of $7.65 per share, a rise of 12.8% from last year.

Past Earnings Performance: Last quarter, the company missed estimates by 10 cents, coming in at profit of $1.94 per share versus a mean estimate of net income of $2.04 per share. In the second quarter, the company beat estimates by 3 cents.

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Wall St. Revenue Expectations: On average, analysts predict $1.08 billion in revenue this quarter, a rise of 5.9% from the year ago quarter. Analysts are forecasting total revenue of $4.24 billion for the year, a rise of 4.7% from last year’s revenue of $4.05 billion.

Analyst Ratings: Analysts seem relatively indifferent about Lorillard with six of eight analysts surveyed maintaining a hold rating.

A Look Back: In the third quarter, profit fell 2.6% to $267 million ($1.94 a share) from $274 million ($1.81 a share) the year earlier, missing analyst expectations. Revenue rose 3.5% to $1.62 billion from $1.57 billion.

Key Stats:

The decrease in profit in the third quarter broke a streak of three consecutive quarters of year-over-year profit increases. Net income rose 10.6% in the second quarter, 6.9% in the first quarter and 7% in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue rose 11.3% in the second quarter from the year earlier, climbed 12.9% in the first quarter from the year-ago quarter and 7.8% in the fourth quarter of the last fiscal year.

Stock Price Performance: During November 7, 2011 to February 3, 2012, the stock price had risen $2.54 (2.3%) from $109.03 to $111.57. The stock price saw one of its best stretches over the last year between April 18, 2011 and May 3, 2011 when shares rose for 11-straight days, rising 10% (+$9.41) over that span. It saw one of its worst periods between May 31, 2011 and June 7, 2011 when shares fell for six-straight days, falling 15.7% (-$17.66) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com